The unemployment rate in Indonesia is alarming. Every time there is a job fair or a job opening, many job seekers flock to apply – far more than will be hired.

Earlier this week, the government launched a paid internship program for tens of thousands of new university graduates (fresh graduates). This program provides an opportunity to work for six months with a salary equivalent to the provincial minimum wage (UMP).

This paid internship program is one of the 8+4+5 economic stimulus packages issued by the government. Coordinating Minister for Economic Affairs Airlangga Hartarto said that this program will be implemented simultaneously throughout Indonesia in collaboration between the central government, local governments, universities, and the industrial sector.

Economic observer from Paramadina University, Wijayanto Samirin, said that this paid internship is considered quite promising and can reduce the unemployment rate if implemented seriously.

"This could be a short-term solution to reduce the unemployment rate. This program encourages university graduates to work because they are paid, which impacts the improvement of work quality," he told SUAR in Jakarta (9/17).

Wijayanto hopes that with this program, the Indonesian workforce can be more competitive.

Head of the Central Statistics Agency (BPS) Amalia Adininggar Widyasanti said that the number of unemployed people as of February 2025 was 7.28 million. This figure increased by 1.11% compared to February 2024.

"Compared to February 2024, as of February 2025, the number of unemployed people increased by 83,450 people, which rose by approximately 1.11%," said Amalia.

Starting Q4–2025

Coordinating Minister for Economic Affairs Airlangga Hartarto said that the implementation of the Fresh Graduate Internship Program is scheduled to begin in the fourth quarter of 2025, or around October to December 2025. The budget prepared by the government reaches Rp 198 billion for the first phase.

This program is open to all companies, both private and state-owned, that want to cooperate in providing internship positions. The government hopes that through this program, new graduates can be better prepared to face the world of work while also reducing the educated unemployment rate in Indonesia.

"One of the things we are also pushing is a link-and-match between fresh graduates to enter the workforce. The government will provide 6 months of salary equivalent to the UMP. So, 10% of fresh graduates will directly enter the workforce with a link-and-match," said Airlangga at the Presidential Palace, Jakarta (9/15).

The terms and conditions for participants who want to join the Fresh Graduate Internship Program are fresh graduates or graduates from a maximum of one year prior. There is no age limit, so graduates who are over 23–24 years old can still participate in the internship. The internship period lasts for six months.

Participants will receive a salary equivalent to the UMP in their respective provinces. The quota for the first phase is limited to only 20,000 participants, and participant placement is adjusted to the regional workforce needs. For the 3T (outermost, foremost, underdeveloped) regions, the central government will take over the placement.

For graduates who have passed one year after graduation, the government provides another avenue in the form of skills improvement training through the Ministry of Manpower.

Private sector support

Chairman of the Indonesian Export Companies Association (GPEI) Benny Soetrisno supports the fresh graduate internship program designed by the government because it can reduce the unemployment rate while also benefiting companies.

The government has prepared a budget for this internship program, so entrepreneurs do not incur costs. This program indirectly benefits companies as well. Because, with the interns being paid, they will put out their best quality.

"This internship program is very positive. It benefits the country because unemployment is reduced, and it benefits companies because university graduates who intern can provide their best performance," said Benny when met at the Roundtable SUAR event in Jakarta (9/18).

He said that this fresh graduate internship program can also increase consumer purchasing power in Indonesia amidst the sluggish global economy.

One of the fresh graduate interns who supports this program is Ivo. He started his internship program in October this year at PT Indosat Ooredoo, coinciding with the fresh graduate internship program from the government.

"I'm happy and excited that the internship is paid for by the government. This can improve the quality of work," Ivo told SUAR in Jakarta (9/18).

He said that the money earned from this program would be saved. Besides earning an income, he also gained experience in the world of work.